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Community
 
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Review of 2003
Structure and governance
Social responsibility and community initiatives are an integral part of AngloGold?s business, from exploration, to operation and closure. These initiatives are managed in a variety of ways, depending on the region of operation, the stage of the project and the nature of the intervention. Management of these initiatives is primarily a line function, best undertaken in the region of operation. The exception to this is the work of the AngloGold Fund which is managed by Tshikululu Social Investments (TSI), a non-profit non-governmental organisation (NGO) on behalf of AngloGold, and directed by a board of trustees chaired by an AngloGold representative. A management fee of R1,961,719 was paid for their services during 2003. The appointment of a Social Development Manager in 2003 will see greater coordination and reporting on social responsibility and community issues in the future. These issues are recorded and monitored at the board sub-committee on Safety, Health and Sustainable Development. This committee comprises non-executive director Bill Nairn (chairman), Deputy Chairman, James Molatsi and CEO Bobby Godsell.

In South Africa, where the greatest proportion of the company?s operations and employees are based, AngloGold?s corporate social investment programme is directed by the AngloGold Fund and Trust. (See case study). The fact that about 70% of the projects supported by the Fund fall within the educational sector, reflects the company?s response to the development priorities of the region. Over and above these activities, the company?s operations play a significant role in community social development, the provision of infrastructure, governance and support at a local level.

Another major challenge, particularly in South Africa, is that of the HIV/AIDS epidemic. AngloGold?s response to the epidemic is an holistic one, embracing local communities where possible. To this end, significant and increasing social responsibility expenditure is devoted to this cause. (See section on HIV/AIDS).

In Namibia, Mali and Tanzania social investment is managed at country and operational level through appropriate structures at each operation, with mine management participation. All these structures aim to address specific community needs through extensive consultation, and have generally agreed to support initiatives in the health, education and agricultural spheres in keeping with the regional and national development priorities of these countries.

Projects address issues such as infrastructure development (roads, water pipelines, sanitation), the construction of buildings (hospital wards, schools and community centres), small business ventures and entrepreneurship. Malaria prevention and management are also important in this region.

In South America, community-based initiatives are focused on the educational, health and environmental sectors. (See case study).

Social investment contributions in Australia are made in areas such as health care, education and training and the environmental spheres. A programme to foster cross-cultural awareness and respect is another initiative funded by the company.

In North America, AngloGold personnel are involved in community initiatives, and encouraging economic diversity and strengthening the post-mining sustainability of local mining-dependent activities.
 
  
The 2003 year is reviewed according to the main elements of the business principles below.
 
Impact on people, cultures and communities
AngloGold is committed to having a positive impact on the people, cultures and communities in which it operates. Accordingly, AngloGold endeavours to be respectful of local and indigenous people, their values, traditions, culture and the environment. A good example of this philosophy is the Community Policy that has been developed by AngloGold Australia. (See policy below).

This philosophy is also illustrated by the relationship between AngloGold and the communities surrounding the East and West Africa region?s Sadiola and Yatela operations in Mali. (See case study).
 
Involvement of communities
A key commitment made by the company articulated in its business principles is that it will strive to ensure that surrounding communities are timeously informed of, and where possible, involved in, developments which affect them. This is obviously most pertinent with new operations and during times of expansion and closure but, where possible, this interaction should be maintained throughout the lifecycle of operations.

An example of this is the Harry Oppenheimer Environmental Centre in Nova Lima, Brazil, South America, which not only provides a place of leisure for surrounding communities, but also informs employees and the communities about mining, and its broader impacts. (See case study).

Another example is the development of a stakeholder management plan at Sunrise Dam, Australia, which outlines the procedures for managing public relations and the strategies and communications and consultation with key stakeholders. A key stakeholders register and list of major stakeholders associated with Sunrise Dam has been established.

At the East and West African operations, it is standard practice for the general manager to meet with interested parties on a monthly basis. At Morila, a quarterly social event ? usually sport or cultural ? is organised between the mine and the community in addition to the monthly management meeting with community leaders. At all the Malian operations, regular visits to the mines are held for members of the local community, at which a thorough briefing is given on the business.

The South African operations have set the objective of a monthly interface with local authorities to align both development and service delivery. Quarterly roadshows by the South African executive team to communicate the performance of the operations on economic indicators and broader community issues are held. Other initiatives include the donation of a number of recreational facilities and land for residential development to local councils and the ongoing involvement of AngloGold?s Asset Protection Services in Community Policing Forums to ensure on-the-ground interaction with local community structures.

In South America, government authorities and opinion formers are invited to a regular lunch at Morro Velho, for an update on developments at the operation and the potential impact this will have on the community.
 
AngloGold Australia – Community policy
AngloGold Australia is committed to the principle that:
Long-term relationships and partnerships will be fostered with the communities in which we operate through mutual understanding, co-operation, consultation and respect. Our social investment initiatives deliver meaningful and lasting benefits to employees, the community and key stakeholders.
To achieve this we will:
• Recognise and respect the value of cultural heritage and cultural diversity;
• Develop and establish positive community relationships based on honesty, integrity and mutual trust;
• Solicit guidance and input from surrounding communities in business development strategies;
• Encourage local participation in employment opportunities, where appropriate;
• Seek consensus between participating stakeholders in issues of land management;
• Conduct stakeholder surveys of AngloGold performance on community support and interactions;
• Support the development and implementation of sustainable social and economic initiatives within the communities in which we operate;
• Provide management systems to identify, assess, monitor and control existing and potential impacts on communities;
• Provide programmes to ensure that employees are aware of and sensitive to the requirements of this policy.
Barrie Parker
Operating General Manager
Date: October 2003
Review date: 1 October 2005
 
Social investment initiatives
AngloGold ensures that social investment initiatives are undertaken in the areas of need where the group can make a practical and meaningful contribution. In particular, AngloGold contributes to those areas of education and health care which are relevant to its business activities and those most likely to be sustainable once its operations have ceased in that community.

A prime example of this is the role played, and the work done by, the AngloGold Fund in South and southern Africa. The work of the Fund is aimed at addressing those areas of need both in the mining communities surrounding its operations as well as those areas from which its employees are drawn.

The company aids the initiatives of people who, with hard work and dedication, seek to contribute towards the broader welfare of their society. During 2003, the Fund contributed R15.5m to 104 projects, across southern Africa. The Fund supports people and organisations striving to make a real difference in their communities. In this way, AngloGold reaches those who have been marginalised from mainstream society. The Fund?s main areas of activity are broadly defined as education, community health, job creation, skills development and entrepreneurship, community upliftment and welfare initiatives.

But social responsibility does not only apply in those countries with existing and long-standing operations. AngloGold?s exploration employees are encouraged to identify areas of need in the communities in which they are prospecting for gold, and to contribute in a host of ways. As a result of an initiative by two AngloGold expatriate employees at the Lotus Children?s Centre in Ulaan Baater, in Mongolia, AngloGold Australia has undertaken to support the centre on an ongoing basis and to provide volunteer services. This centre currently supports 115 homeless children with food, education and accommodation, as well as providing a refuge centre and soup kitchen for the local community in Yarmeg. (See case study).
 
Participatory and leadership roles in community activities
AngloGold encourages its employees to make themselves available for participatory and leadership roles in community activities. The most structured volunteerism programme exists in the North American region where 30% of eligible employees (91 people) each volunteered on average 54 hours for community service during the year. (See case study).

Other examples include the Kilimanjaro expedition undertaken at the East and West Africa region?s Geita mine where groups of employees, including the mine manager, climbed the nearby mountain ? the highest peak in Africa ? to create AIDS awareness and to raise funds for treatment and services. During 2003, the group was accompanied by two HIV-positive individuals. (See case study).

A pilot Employee Involvement Scheme is currently being developed at the Corporate Office and at site level in South Africa. AngloGold employees are already represented on a wide range of community and governance structures, ranging from NGOs, community-based organisations (CBOs) to school governing bodies and religious institutions. An example is the contribution made by Dr Petra Kruger, Manager of AngloGold?s HIV/AIDS programme and the Carletonville Community Centre. (See case study in AIDS section of the report). Over and above her involvement in the project as a result of AngloGold?s support for it, Dr Kruger has taken on the role of Chairman of the Board of Trustees. (See interview).
  
Working with communities on land and resettlement
AngloGold has undertaken to acquire and use land in such a way that it promotes the best possible consensus amongst interested people. Where involuntary resettlement is unavoidable, the group will abide by appropriate guidelines for resettlement where they exist and in any event will work with the local communities to develop workable plans for any resettlement that may be necessary.

A prime example of this was the relocation of three villages in Mali. The relocation of the Sadiola village in 1999 and the Farabakouta village in 2000 at Sadiola involved the movement of 1,500 and 550 people respectively. The cost of the relocation was about US$5.5 million (See case study). The Niambalouma village at the Yatela mine, with 109 inhabitants, was relocated at a cost of some US$400,000. In keeping with best practice, World Bank guidelines on involuntary resettlement were followed.
 
Micro-economic development initiatives in East and West Africa
• At Morila mine in Mali, 50% of the proceeds made from the sale of scrap metal from the mine are paid into a community fund, managed by a local community committee. The first project implemented was a cereal bank, which entails the purchase and storage of bulk cereal. This cereal is sold back to the community and has been of particular benefit during times of drought.
• At Geita mine in Tanzania, a microfinance credit scheme in association with an NGO called Poverty Africa has granted 72 loans ? averaging $416 each ? to individuals from the local community for small business creation, including the Nyakabale Agro-Forestry project. (See case study).
• At Sadiola mine in Mali a micro-credit scheme was implemented in 1999 for the development of small businesses. To date, 83 loans have been granted at an average of US$868 per loan. 30% of the loans have been fully repaid.
• At Yatela mine in Mali, a micro-credit scheme implemented in 2000 has granted 20 loans to date, at an average value of US$1,029 per loan. 50% of the loans have been fully repaid.
  
Contribute to sustainable economic development of host communities
A fundamental philosophy of AngloGold?s activities is that the group should contribute to the sustainable economic development of host communities through procurement activities, the contribution of redundant assets to the community, assistance in the establishment and growth of small to medium-sized sustainable enterprises, and the outsourcing of the provision of goods and services to local vendors where appropriate.

AngloGold Australia?s partnership with Carey Mining has been used by the Federal Government?s Department of Industry, Tourism and Resources as a case study under this Working in Partnership ? the mining industry and indigenous communities programme. (See case study).

Various forms of micro-economic development initiatives are delivering meaningful opportunities for economic activity in the East and West African region.

The Nyakabale Community Agro-forestry project at the Geita Gold mine in Tanzania is an example, where 48 farmers from the community are engaged in supplying 65% of the fresh fruit and vegetable supplies to the mine while at the same time developing a cash crop that will sustain the community once mining has ceased. (See case study in the Environment section of this report).

In South Africa, enterprise development is run under the auspices of the Small and Medium Business Development Initiative (SMEDI), in conjunction with the Masakhisane Investment Fund. Since its inception in 1998, SMEDI-operated companies have accumulated a turnover of R560 million, a total of 3,094 job opportunities having been created. (See case study).
 
 
 
Business principle:
  AngloGold in the community
Key indicators
Milestones - 2003
Policy
Review of 2003
  Structure and governance
  Impact on people, cultures and communities
  Involvement of communities
  Social investment initiatives
  Participatory and leadership roles
  Working with communities on land and resettlement
  Contribute to sustainable economic development of host communities
Reporting in line
with GRI
Objectives for 2004
Case studies
  South Africa
  East and West Africa
  South America
  Australia
  North America
  Exploration
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Ethics & governance   Community   Safety   Health   HIV/AIDS   Environment   Labour practices